What is a Lead Investor
Are you struggling to secure the funding you need to take your business to the next level? Maybe you should you consider the benefits of finding a lead investor. A lead investor is the first person to make an outside investment in your company (simplecrowdfunding.co.uk/help/faq/what-is-a-lead-investor). They also take the lead by introducing your company to more potential investors. Ideally, this produces a chain of investors that helps you meet your fundraising goals.
There are several reasons why it may be difficult for a
start-up company to find investors. In the article entitled, “25 Reasons
Why I Will Not Invest in your Start-up,” Entreprenuer.com provides greater insight
into this critical issue (entrepreneur.com/article/236999).
Reasons cited include, you have an inexperienced team, you cold-called me, you
are way too early for my money, there aren't any other investors. These
objections can be overcome by finding a lead investor.
You can click this link for help finding a lead investor for
your business start-up, http://omegaaccelerator.com/contact/.
There are many benefits to becoming a lead investor.
Lead investors often enjoy a larger percentage of the profits than later
investors. They also may enjoy a seat on the board and have an active
role in management (https://blog.funderbeam.com/faq_item/what-is-a-lead-investor-and-how-do-i-become-one/).
These investors may also negotiate special perks, such as exclusive vendor/customer relationships, networking opportunities, employment, etc.
Click this link to subscribe to our newsletter and learn
about lead investor opportunities, http://omegaaccelerator.com/.
Here are some quick tips for finding your lead investor
- Strong MVP
- Compelling 1-page executive summary
- Don't worry about the valuation until later
- Network
- Pitch friends and family first
- Put some of your own money in the company
- Make traction
- Market like crazy
- Be persistent, not annoying
- Enjoy the process
